Impact of floods: High risk of food shortage during festivals, signs of price rise
Manisha Basnet, Nepal News Bank
Kathmandu. The supply of food and consumables targeting the festivals has been halted in Nepal after the devastating floods in the Bhotekoshi and Trishuli rivers caused major damage to the roads and trade routes linking the major trade points with China.
Similarly, the main highway linking Kathmandu with the Tarai has also been affected, indicating food crisis and price hike in the districts of Kathmandu including the Kathmandu Valley. The Muglin-Naubise section of the Prithvi Highway has been obstructed due to landslides triggered by landslides at Krishnabhir in Dhading district, affecting the vehicular movement to Chitwan, Tanahun, Kaski and other districts of western Nepal. Entrepreneurs have said that the supply of imported goods targeting the upcoming Dashain and Tihar season has been affected after a large quantity of goods entering Nepal from Tatopani and Rasuwa border points have been stranded on the way due to floods and hundreds of cargo vehicles have been swept away. They said that if there is no immediate alternative supply route, there may be a shortage of goods in the market during the festive season and the price may increase. According to Ramhari Karki, president of the Nepal Himalayan Cross-Border Chamber of Commerce and Industry, around two hundred vehicles carrying goods aimed at the festival have been swept away due to the floods. He said that it may be difficult to supply the goods in the market immediately as the goods in these vehicles are destroyed.
“The goods targeting the festivals that were supposed to have an immediate impact in the Nepali market have now been washed away, two hundred vehicles have been damaged. There is a concern that the goods will not be available immediately,” he said, “Now we have no option during the festivals.” One of the nearest checkpoints was Tatopani. Now that Tatopani has also been closed indefinitely, now we have only one option, there is no other option than Korala. According to businessmen, due to the closure of Tatopani border point, a large part of the goods imported from China have to be diverted to Korala border. However, bringing goods through Korala will increase the distance and transportation time, which will put more pressure on the supply management of the market.
According to Karki, it may take about a week to 1
0 days to bring goods from Tatopani under normal circumstances, but it may take about a week to 10 days to bring goods through Korala.
Entrepreneurs say that the transportation cost has also increased due to the damage caused by Tatopani and Rasuwa border points.
Karki said that the transportation which used to be around two lakh to two and a quarter lakh rupees earlier has now reached three to four lakh rupees. Due to this, the price of consumer goods will increase.
Karki said that there are already signs of shortage of goods in the market. According to him, it takes about 10 days to bring the goods from Korala border point and there is also a shortage of transport vehicles.
He said, “We have seen that there is a shortage of those goods. Now 200 vehicles brought for this purpose have already been swept away. Now the remaining goods are on the way. Now, in this way, it takes about 10 days to come from Korala border. We don’t even have enough vehicles. According to him, even if goods can be brought through the sea route as an alternative, it is not possible to bring the goods required for the festivals to Nepal immediately.
He said that it usually takes around
two months to bring goods by sea and there is little possibility of the goods being imported before Dashain and Tihar.
When the cost of transportation increases, it will have a direct impact on the price paid by the consumers. But the main concern of the businessmen is that the essential goods may not be available in sufficient quantities during the festival rather than the price increase.
According to Karki, it may take around
12 to 13 days to reach Kathmandu via Tatopani or Rasuwa by land, but it may take 55 to 65 days to bring goods by sea.
He said, “Now the goods will arrive in Kathmandu in about 12-13 days from Tatopani and Rasuwa. Now it takes 55 to 65 days to come by sea, but now it is crossing for two months. In two months, we will get all the Dashain and Tihar. In that sense, there is no situation to bring the goods from Bai Si to Kathmandu immediately.” The businessmen have estimated that the size of the damage caused to the business sector due to the floods is huge. According to Karki, goods worth more than two billion rupees have been damaged after the sweeping away of goods trucks.
Businessmen have urged the government to immediately make alternative supply arrangements, saying that Nepal has a large share of goods imported from China. They say that even though India is an alternative market, some goods imported from China are not available in India at the same price and quality.
Karki said that Nepal’s dependence on imports from China is still high. He said that although the production of some goods has started in Nepal, the raw materials required for it also come from China.
The concern of the businessmen is not limited to imports. Traders say that the supply and prices of goods have been affected after the floods in the Asan Bazaar of Kathmandu.
Nar Bahadur Maharjan, the owner of NB Store in Asan, said that the business is being run only from the old stock in the shop. He said that the new goods are not easily available and the prices have increased.
He said, “There is no stock. Despite getting new goods, the price has increased.” According to Maharjan, his shop sells food items like ghee, oil, sesame laddoo, cloves, sweet potatoes, cumin, cashew nuts and raisins.
He said that the supply of goods has been affected due to the disruption of the road following the floods and the hustle and bustle of festivals in the market has also decreased. Maharjan said that there is a limited quantity of goods coming to the market and the retailers are getting goods only from the stock with the big traders. He said that the problem in cash transactions and lack of space to keep enough stock are also causing more problems for the small businessmen.
He said, “We have not received the goods due to the blockage of the road. Even the big traders may have kept some stock. Even if there is cash transaction, our business should have been done, but the business is very slow. We do not have a place to stock it. Now we will bring as much as we need and sell it. We do not know whether the goods will come or not, but alternative routes have come into operation. We are optimistic. Sahitya Ratna Tuladhar, the owner of a food store in Asan, said that they are now trading with the old stock. He said that they are in a position to sell the goods only after receiving them from the importers.
He said, “We are selling the goods that are already there. Other goods do not come much, they come very little. We will sell only if the importers give us the goods.” “
After the floods, there is limited stock in the market, increasing transportation costs and the price rise of some goods. But if the main trade point is blocked for a long time, the impact of this could be deepened as the festival approaches.
Supply management has been added to the challenge due to the damage to a large part of the goods already imported for the Dashain and Tihar festivals, the remaining goods are on the way and it takes more time to bring the goods through alternative border points.
The entrepreneurs have urged the government to bring the border points and roadways into operation immediately, to ease the process of bringing goods through alternative border points and to arrange containers and vehicles for transportation. They said that if the supply is not managed on time, there is a risk of not only the price of goods but also the shortage of essential food and consumables during the festival.
The floods have not only affected the trade goods but also the revenue collection of the government. The revenue collection dependent on imports from Tatopani and Rasuwa border points is also affected, which may reduce the income of the state.
प्रतिक्रिया दिनुहोस्
